Explain the following concepts.


1)  Fiat Currency

2)  Correspondent Bank

3)  Balance of Trade

4)  Cross currency Rates

5)  Spread / % Spread

6)  Pips/ Points

7)  Tom / Value tomorrow Contract / Rate

8)  Forward Contract / Rate

9)  Premium and Discount

10)Outright forward rates

11)Clean or Free Float

12)Dirty or Managed Float

13)Merchant rates

14)Ready rates


16)Offshore Bonds

17)Collared Bonds


19)Hot money

20)Hedge Funds

21)Authorised Dealers (AD’s)

22)Inter-bank Market

23)Translation Risk

24)Daylight limit

25)Stop-loss limit

26)American and European options


Write notes on

1)  Arbitrage

2)  Speculation

3)  PPP theory

4)  Central Bank Intervention

5)  Market Stabilisation Scheme (MSS)

6)  List the features of offshore Financial Centres (OFC’s)

7)  Enumerate the features of GDR’s

8)  What are advantages of GDR’s to the issuing company and investors?

9)  Management of reserves is a balancing act. What is the role of RBI in this area?

10)Convertibility of a currency is a two-edge sword, why?

11)Foreign Currency Swaps

12)Foreign currency Futures



Distinguish Between

1)  Autonomous and Accomodating transactions.

2)  Arbitrage and Speculation

3)  Devaluation and Depreciation

4)  Fixed and Flexible Exchange rate systems.

5)  Merchant Transactions and Interbank Transactions

6)  Euro-currency Bonds and Credits (Loans)

7)  Euro-currency Bonds and Notes.

8)  Forward Contracts and Futures Contracts

9)  Futures Contracts and Option Contracts


Descriptive Questions

1)  The Current Account of the Balance of Payments is the key to establishing foreign currency demand/supply equilibrium. Discuss.

2)  Discuss the connectivity between exchange rates, interest rates and

commodity prices.

3)  Enumerate the features of the Bretton Woods System and explain the reasons for its failure

4)  Describe the operations of a foreign Exchange Dealing Room.

5)  Define a Bond. Discuss the various types of international bonds.

6)  Enumerate the roles of participants in the Indian Foreign Exchange market.

The following two tabs change content below.
hello, this is sunil Newaskar working as Visiting faculty for BMS / MMS (Finance ) with various colleges. also having shreya consultancy (in Project management and capital budgeting) . regards sunil newaskar

Leave a reply

Your email address will not be published. Required fields are marked *



BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2019 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp

Log in with your credentials


Forgot your details?


Create Account